"Excess supply and discretionary demand for uranium products
has resulted in further downward pressure on the uranium price,"
Chief Executive Tim Gitzel said in a statement. "While we do not
expect improvement in the near to medium term, the long-term
outlook for the industry remains strong."

Shares of the Saskatoon, Saskatchewan-based company lost 4.3
percent to C$23.09 in Toronto, losing more ground than fellow
uranium producers. On the year, Cameco is up nearly five
percent.

Uranium prices are hovering near their lowest since 2005 in
a prolonged slump since an earthquake and tsunami struck Japan
in March 2011, leading to the shutdown of nearly all reactors in
the country. The disaster crimped Japanese demand for uranium
and fueled fears about a backlash to nuclear power.

"The results are OK, but I think the market is just focusing
on negatives given the falling spot uranium price," said BMO
Capital Markets analyst Edward Sterck. "Cameco and the other
uranium stocks have held up pretty well so far considering the
declining uranium price and they may just be coming back into
line."
Continued...